Uber & DoorDash Tax Deductions: 11 Expenses Drivers Often Miss

Why Expense Tracking Matters for Toronto Drivers

Rideshare and delivery driving in Toronto can generate a steady income, but it also brings a wide range of costs that are easy to leave unrecorded. Missing eligible expenses can mean paying more tax than necessary. Accurate tracking is essential if you want your numbers to reflect the true cost of running your driving activity. If you drive for Uber, DoorDash or a similar platform, our self-employed tax service can help you organize your records and prepare your return.

Basic expense categories can overlook smaller or irregular costs. When combined, eligible items that are missed can affect your net business income.

Common Gaps in Expense Reporting

Fuel and maintenance are only part of the picture. Other costs may qualify when they relate to earning business income and you keep the required records.

Below are 11 commonly overlooked expenses. Claim eligible costs incurred to earn business income. Shared business and personal expenses must be allocated appropriately. Business parking and supplementary business insurance have specific treatment. Keep a mileage log as described later in this guide. Charges that the digital platform keeps from your fares can also be claimed, according to CRA’s sharing economy page.

1. Vehicle capital cost allowance (CCA)

Buying a vehicle is generally a capital purchase rather than an ordinary operating expense. Instead of deducting the purchase price as a current expense, you may be able to claim capital cost allowance (CCA). CCA is optional: you can claim any amount from zero up to the maximum, and only for the eligible business-use portion of the vehicle. The class, any cost limit, the first-year rules and the treatment of zero-emission vehicles depend on the type of vehicle, when you acquired it, when it became available for use, and the first-year incentives that apply for that year. Because these rules change, check CRA’s guide to capital cost allowance and its motor vehicle expenses page for your tax year before you claim, and ask us if you are not sure.

2. Insurance Adjustments

Insurance on your vehicle is a vehicle expense, so only the business-use part counts. CRA says supplementary business insurance can be deducted in full. If you pay an extra premium for rideshare or delivery coverage, keep your policy documents and ask your insurer how that premium is described, because the treatment depends on what the coverage is.

3. Mobile Phone Costs

Your phone is essential for navigation, accepting orders and communicating with customers. CRA says you can deduct the percentage of cellphone airtime expenses that you use to earn business income. Keep your bills and note how you estimated the business percentage.

4. Data Plans and Apps

The business share of data charges and of paid navigation or route-optimization apps is also an expense. Keep the invoices and a short note showing how you worked out the business share.

5. Cleaning and Car Washes

Maintaining a clean vehicle is necessary for customer satisfaction and ratings. Regular car washes, interior cleaning supplies and detailing are vehicle expenses, and the business-use part of them may be claimed. Keep the receipts.

6. Parking Fees

Parking fees related to your business, such as parking while you wait for orders or complete deliveries, can add up quickly in Toronto. CRA says business parking fees can be deducted in full, so keep the receipts and a note of the trip. Most fines and penalties, however, are not deductible.

7. Tolls and Road Charges

Highway tolls and express route fees paid on business trips can be business expenses. Records of these charges are easy to lose, which can lead to missed deductions at tax time. Keep your toll account statements and note which trips were for work.

8. Vehicle Financing Interest

If your car is financed, the interest on the loan can be a business expense for the business-use part. For passenger vehicles, CRA limits the interest you can deduct, and the limit depends on when you acquired the vehicle. See CRA’s motor vehicle expenses page for the formula, and keep your loan statements showing the interest paid.

9. Accessories and Equipment

Phone mounts, chargers, insulated delivery bags and dash cams may be business expenses if you use them to earn income. Small items that you use up or replace regularly are normally current expenses; more durable or costly equipment may be capital property, which is subject to the applicable CCA rules. Keep the receipts.

10. Accounting and Filing Fees

Accounting and legal fees for help with keeping your records and for preparing and filing your income tax and GST/HST returns can be deducted as a business expense, to the extent they relate to your business. Keep the invoice.

11. Home Office Use

You can claim business-use-of-home expenses only if the workspace is your principal place of business, or you use the space only to earn business income and use it on a regular and ongoing basis to meet your clients, customers or patients. The claim also cannot create or increase a business loss, and whether you qualify depends on your own circumstances. Review CRA’s business-use-of-home page before you claim.

How Uber & DoorDash Tax Services Help Toronto Drivers

Vehicle expenses, mileage records and GST/HST rules all depend on good records. For self-employed drivers, we prepare the T2125 business income and expense statement, calculate the business-use share supported by your records, and prepare and file your return.

Our fee for Uber and other self-employed returns starts from $149.99 per return (CAD, before HST). The final fee depends on your records, and we confirm the fee before we start. For GST/HST registration and filing, contact us for a quote. We confirm the scope and fee before starting.

See our Uber and DoorDash tax filing page for how it works, our self-employed tax service for what to bring, or contact us to book a consultation.

GST/HST: Ride-Sharing vs Delivery

Ride-sharing (passenger transportation) and delivery follow different GST/HST rules, and mixing them up can be costly.

Ride-sharing (Uber, Lyft and similar passenger transportation): since July 1, 2017, CRA requires self-employed commercial ride-sharing drivers to register for GST/HST, charge it on their fares and remit it, even if they are small suppliers. The $30,000 small-supplier threshold does not apply to these fares. Your effective date of registration is the date of your first fare, and CRA’s guide GI-196 gives an example in which a driver whose first fare is September 1 must apply to register by September 30. CRA’s registration page explains the steps to follow if your effective date is more than 30 days in the past. See CRA’s pages on GST/HST for taxi operators and commercial ride-sharing drivers, GST/HST and commercial ride-sharing services (GI-196) and registering as a rideshare driver or taxi operator.

Food and parcel delivery only (DoorDash, Uber Eats and similar): the ride-sharing rule does not apply to delivery-only drivers, who follow the small-supplier rules instead. CRA’s delivery services info sheet (GI-202) treats you as a small supplier if your taxable revenue is $30,000 or less in a single calendar quarter and over the last four consecutive calendar quarters. The revenue counted is from your worldwide taxable supplies and, where applicable, the revenues of associated persons. When you exceed the threshold affects your registration and collection start dates. If you exceed $30,000 in a single calendar quarter, you stop being a small supplier and must charge GST/HST on the supply that made you exceed it. If you exceed it over four consecutive calendar quarters, you stop being a small supplier at the end of the month following that quarter. See CRA’s guidance on when to register and start charging GST/HST for the timing and registration deadlines, and CRA’s tax tip on commercial ridesharing and delivery services on the delivery rules and voluntary registration. Once registered, a self-employed delivery driver collects GST/HST at the rate that applies to the delivery location.

If you do both passenger rides and deliveries: CRA’s gig economy page says that if your combined taxable sales are within the small-supplier limits described above, you must register and remit only for ride-sharing, although you can choose to collect on your other services too. Once you exceed those limits, you must also collect and remit GST/HST on your delivery supplies from the point the timing rules above require, not retroactively on earlier deliveries. This test applies to your taxable supplies, not to all of your self-employment income.

Registered drivers can generally claim input tax credits on the GST/HST they pay on expenses used to earn taxable income, excluding personal use; see our guide to GST/HST input tax credit records. If you are not sure whether you must register, see our guide to GST/HST registration for freelancers. Our GST/HST team can register you, file your returns and tell you whether the Quick Method makes sense for you.

Tips to Keep Track of Expenses Efficiently

Keep digital copies of receipts and a mileage log for the whole year. CRA says that when you use a vehicle for both business and personal purposes, you can deduct only the part of the expenses that relates to earning income, and its example works out the share by dividing business kilometres by total kilometres. The per-kilometre rates published each year limit the tax-free allowances that employers pay employees; they are not a flat deduction for a self-employed driver, who claims actual expenses.

CRA expects you to keep the total kilometres you drove and the kilometres you drove to earn income; for each business trip, the date, destination, purpose and kilometres; and your odometer reading at the start and end of the fiscal period. CRA says the best evidence of business use is an accurate logbook of business travel kept for the full year. After keeping a complete base-year logbook, you may qualify to use a three-month sample in a later year if CRA’s conditions are met. The method compares corresponding periods and uses a prescribed calculation; a three-month sample alone is not automatically sufficient. See the simplified logbook method on CRA’s motor vehicle expenses page. Keep the base-year logbook for six years from the end of the tax year for which it is last used, and keep separate records for each vehicle. Trip histories from the Uber or DoorDash app can help you check dates and distances, but keep your own log as well. See our guides to the business mileage logbook and the self-employed tax records checklist.

Review your expenses monthly instead of waiting until year-end. If you are unsure whether a particular trip counts as business use, ask us before you decide how to record it.

Why Small Expenses Matter

Individually, many of these costs may seem small, but together they may reduce your net business income if they are eligible business costs. Claim only what relates to earning income and what you can support with receipts, statements and your logbook.

Moving Forward

Driving for Uber and DoorDash comes with more expenses than most people realize. From vehicle-related costs to digital tools and administrative fees, every detail counts. Overlooking even a few of these can lead to higher tax payments.

If you drive in Toronto and want help with your return, your expenses or GST/HST registration, contact Toronto Tax & Accounting Solutions Inc to book a consultation.

This guide is general information, not advice for your situation. CRA rules and limits change, so confirm the details for your tax year before you file.

Official sources

• CRA: GST/HST information for taxi operators and commercial ride-sharing drivers
• CRA: GST/HST and commercial ride-sharing services (GI-196)
• CRA: Register as a rideshare driver or taxi operator
• CRA: Tax obligations for commercial ridesharing and delivery services
• CRA: Delivery services involving platforms (GI-202)
• CRA: When to register for and start charging the GST/HST
• CRA: Gig economy, taxes and the platform economy
• CRA: Motor vehicle expenses
• CRA: Sharing economy, taxes and the platform economy
• CRA guide T4002, chapter 4: Capital cost allowance
• CRA guide T4002, chapter 3: Expenses
• CRA: Business-use-of-home expenses
• Department of Finance Canada: 2026 automobile deduction limits and expense benefit rates

Sources reviewed on October 15, 2026.